Nationwide is cutting mortgage rates by up to 0.26% despite the Bank of England’s decision to keep base rate at 4.5%. 

The building society reductions apply to selected two, three and five-year fixed rate deals between 80% and 95% LTV. 

The changes mean it is introducing sub-5% rates for new buyers with just a 5% deposit. 

Some of the new products will be available at 90% and 95% LTV but will come with a £1,499 fee. 

New customers moving home will enjoy reductions of up to 0.21% across two, three and five-year fixed rate products between 80% and 95% LTV, including: 

• Five-year fixed rate at 95% LTV with a £999 fee is 4.99% (reduced by 0.05%);

• Two-year fixed rate at 90% LTV with no fee is 4.99% (reduced by 0.21%);

• Five-year fixed rate at 90% LTV with a £999 fee is 4.57% (reduced by 0.10%);

• Two-year fixed rate at 80% LTV with a £999 fee is 4.49% (reduced by 0.10%).

First-time buyers will enjoy reductions of up to 0.26% across two, three and five-year fixed rate products between 80% and 95% LTV, including: 

• Five-year fixed rate at 95% LTV with a £999 fee is 5.04% (reduced by 0.25%);

• Two-year fixed rate at 95% LTV with no fee is 5.3% (reduced by 0.26%);

• Two-year fixed rate at 85% LTV with a £999 fee is 4.6% (reduced by 0.04%).